Withholding filing methods are determined using a “lookback period,” which is from July 1 to June 30 in the year immediately preceding the calendar year for which the period is being determined.
For instance, the lookback period for calendar year 2019 withholding is July 1, 2017 through June 30, 2018. The Division of Revenue looks at this time annually to determine how much tax you’ve reported. The amount you’ve reported determines whether you will have to remit your withholding monthly, quarterly, or 8th monthly.
The withholding thresholds are listed below:
$3600 or less remits Quarterly
$3600.01 to $20,000 remits Monthly
$20,000.01 and greater remits 8th Monthly
Effective 1/1/18 the new thresholds will be:
$4570 or less remits Quarterly
$4570.01 to $25,410 remits Monthly
$25,000.01 and greater remits 8th Monthly